Proverbs 28:16 is essentially saying that a leader who woefully lacks judgment, so that he oppresses the people to acquire their wealth, shoots himself in the foot. But a king who hates ill-gotten gain prolongs his days as king.
We see a perfect example of this Scripture passage violated when Solomon's son Rehoboam, after his father's death, oppressed the Jews financially (even worse than his father did to fund all his building projects), and 10 of the 12 tribes of Israel rebelled to journey north with Jeroboam instead. Thus, the northern kingdom of Israel was started.
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